Dairy groups support USTR’s recent action against Canada’s dairy policies
U.S. dairy groups are supporting Wednesday’s action by the U.S. Trade Representative to challenge Canada’s dairy trade practices.
Jeff Lyon with FarmFirst Dairy Cooperative is pleased the USTR is again going after Canada to have them fulfill their obligations under the USMCA agreement. “Canada has just shown already, going back to last year that they truly didn’t want to follow their obligations and put another proposal in that doesn’t make many changes.”
Jaime Castaneda with National Milk Producers Federation says the first dispute settlement panel ruled in favor of the U.S. but only looked at one provision of the Canadian dairy trade problem. This time, Castaneda says the U.S. Trade Representative is going to a new dispute panel with a more complete list of violations. “It is better actually for them to come back with stronger, more broader case as we know now that Canada will not negotiate in good faith.”
Castaneda says Canada talks about exports and the rule of law, but when it comes to dairy, all that goes out the window. “They don’t care about anything when it comes to dairy, and it is a shame. It is a shame to the Canadian government. It’s a shame to the Prime Minister. It’s a shame to the Trade Minister. They can’t talk with both sides of their mouth.”
Mykel Wedig from Edge Dairy Farmers Cooperative says one of Canada’s tariff rate quota qualifications essentially means if an exporter doesn’t already have the TRQ, they’re not going to get it. “Canada is requiring TRQ applicants to be operating for all twelve months of a twelve-month reference period, which is the time that the Canadian government judges their activity in processing or distribution, so that could potentially keep out a few new entrants.”
The dairy leaders are skeptical about Canada meeting its obligations under USMCA, and it’s not just an issue in the U.S. Castaneda says New Zealand has filed a dispute under the Trans-Pacific Partnership against Canada for similar reasons.
Castaneda hopes that this new dispute settlement action will have a final determination in about a year.